Halifax Credit card - Advice required!

geo_82

Hi,

I have owned by Halifax card for over 8 years with little gain in actually reducing the debt of £10,800 as the interest has been at such a right as to make only the minimum payment possible.

I was able to transfer £2000 off this card reducing it down to £8,800 but again still not really getting anywhere.

I have since contact Halifax to discuss this and asked them over the period of 8 years how much interest I had paid, to my amazement it totalled over £6,600.

I have since wrote a letter to halifax asking for the debt to be completely wrote off or that the interest paid be written off against the remaining balance as I am in no financial position to be making payments on this card anymore.

Today I received a letter back from them, with them asking me to contact one of their free independent money advisors (Payplan) to explore a possible reduced arrangement on the account.

So my question is, do I contact Payplan? or do I continue in letter with Halifax?

Any advice in general would be most helpful.

Thanks
Geo 82

DarkConvict

They won't write of the balance because that interest is their profit for lending you money. The annoying bit is you never learn the danger of minimum payments until you can't afford them, at which point you see the big picture.

PayPlan are independent, and are recommended here. They do have some pay services, which is why they are not on the list, but they are perfectly fine DMP company to use. here is the recommended list - http://forums.moneysavingexpert.com/showthread.html?t=2077631
What halifax is suggesting is you starting a DMP with one of the debt charities. Halifax is under no obligation to freeze interest or accept lower payments. It is likely you will get late payment markers and defaults on your credit file.

PayPlan is http://www.payplan.com/ (as they are not on the list )

Also worth exploring reclaiming credit card charges -http://www.moneysavingexpert.com/reclaim/credit-card-charges

Reclaiming PPI (if it exists on a credit card) - http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Checking enforceability of your agreement in court (you still owe the money either way) - http://forums.moneysavingexpert.com/showthread.html?t=2305463